ACCOUNTING TREATMENT FOR HISTORIC ASSETS

Accounting for historic assets (heritage assets) is one issue that is still being debated. Historical assets consist of several types, namely historic buildings, monuments, archeological sites, conservation areas, and works of art. This historic asset is an asset of specific quality that cannot be replicated, and its age is unlimited (Aversano and Ferrone, 2012). Aversano and Christiaens (2012) also argue that historical assets are different from assets in general because these assets cannot be reproduced, replaced and do not allow conditions to be traded. This historic asset is considered as a unique asset, because this asset was obtained in various ways, not only from development but also from purchases, donations, inheritance, booty, or confiscation. Many definitions explain about the nature of historic assets, but until now there has been no accounting definition or legal definition of historic assets. According to Carnegie and Wolnizer (1995), historic assets are not assets and are more precisely classified as liabilities, or alternatively referred to as facilities and present them separately. Micallef and Peirson (1997), historic assets are classified as assets and can be included in the balance sheet, but this is still a debate for accountants. While Agustini (2011), historic assets are one of the assets protected by the state. This asset is considered very valuable to a nation because it is a form of culture, history and identity for the nation itself. Not merely economic value that can be generated from these assets, but also the values ​​contained in them such as art, culture, education, national history, science and others that must be preserved and preserved.

The accounting treatment for historic assets varies depending on the nature of the entity that houses it and the nature of the asset. These two properties are related to one another so that it cannot be separated. According to Pallot (1992) historic assets must be presented in separate categories from assets as "regional assets", while according to Barton (2000) these historic assets must be presented in separate budgets as "service assets". This difference causes difficulties in determining appropriate standards applied to the manager of historic assets and the assets themselves.

This historic asset must be assessed using appropriate methods so that it can produce reliable information through financial statements, starting from the stages of recognition, valuation, measurement, presentation and disclosure so as to encourage better management by related parties. The emergence of different views in determining the appropriate method of recognition, valuation, measurement, presentation, and disclosure for historic assets causes the public sector as the manager of historic assets to experience uncertainty. Although in the end accounting standards for historic assets have been set along with the issuance of Government Accounting Standards Guidelines (PSAP) No. 7 of 2010, but these standards are considered only normative. This means that the standards that have been set are not necessarily in accordance with practices that occur in the field.

Many definitions explain the meaning of historical assets due to differences in the criteria used to determine these definitions. For example IPSAS (International Public Sector Accounting Standards) in Aversano and Ferrone (2012) concerning property, plants, and equipment that "some assets are described as heritage assets because of their cultural, environmental or historical significance". Historic assets are tangible assets that are protected by the government, in which they contain artistic, cultural, educational, historical, knowledge and other characteristics so that they are worth preserving and preserving.

Recognition of historic assets according to Agustini (2011) that at the stage of recognition of historic assets the Indonesian government should treat the same as non-operational heritage assets with operational heritage assets. Historical assets are recognized as fixed assets in the financial statements.

Valuation is the process of determining the economic value of an object, post, or element (Statement of Financial Accounting Concept No.5). Valuation is used to show the process of determining the amount of rupiah that must be placed on each element or financial statement post at the time of presentation. Asset valuation aims to represent the attributes of assets related to the purpose of financial statements using an appropriate valuation basis. Historic assets have different valuation models in each country. Each country is free to choose the most appropriate guidelines used in accordance with the conditions and situations in the country. This freedom is intended so that the entity can provide more relevant and useful information, but as a result there is a diversity of guidelines across countries.

Measurement is an attribute that is reported in financial statements (for example assets, income, liabilities) as an important function in accounting. Campbell (1928), there are two types of measurements, namely: 1) Fundamental measurements, where numbers can be applied to objects with reference to natural law and do not depend on the measurement of any variable; 2) Derivative measurements, depending on two measurements or more other objects. Derivative measurements are different from fundamental measurements that can stand alone. Derivative measurement in accounting for example is income, income derived from the addition and reduction of income and expenses. But Torgerson (1958) in Zavgren & Lambert (1980) has a different view, that there is still one type of measurement based on a changing definition. These measurements are fiat measurements. This fiat measurement uses a randomly constructed definition to be associated with things that can be observed with certainty (variables) on an existing concept, without the need for confirmation to support the relationship. So the exact measurement used in accounting for historic assets is a type of fiat measurement. Fiat measurements do not base measurements on existing theories so they can be used as a reference for various ways in which scales can be made.

The presentation of historic assets according to Christiaens and Rommel (2008) must be included in the balance sheet even though it does not meet the official definition. Whereas Barton (2000), historic assets must be presented in separate budgets as "service assets". Nasi et al. (2001) state that historic assets must not be presented in the balance sheet.

Disclosure of historic assets in the financial statements according to PSAP Number 07 of 2010, historic assets are disclosed in the Notes to the Financial Statements only without value. However, except for some historic assets that provide other potential benefits to the government in addition to its historical value, for example buildings for office space, these assets will be determined the same principles as other fixed assets. Historic assets included in this class will be included in the balance sheet.